A variable rate mortgage of $150000 is amortized over 20 years by equal monthly payments. After 20 months the original interest rate is 7% compounded semi annually and raised to 7.6% compounded semi-annually. Two years later after the mortgage was taken out, it was renewed at the request of mortagagor at a fixed rate of 6.56% compounded semi annually for a 5 year term

a. Calculate the mortgage balance after 18 months. Calculate the balance at 7.6%

b. Calculate the balance at 6.56.

Answer rating: 100% (QA)

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